Can I Just Stop Paying My Citi Financial / One Main Financial Loan?

Question:

Dear Steve,

I got a loan from One Main, formally Citi Financial 13 years ago and have paid no less than $100 a month. I estimate I’ve paid $15,000 on a $5000 loan and I want to stop. I still owe $4600.

What are my options? I was told I may qualify for some kind of debt release because of the time frame. Any advice would help.

Donna

Answer:

Dear Donna,

Whoever told you that story about debt relief because of a time frame needs to not be consulted again. That’s not true.

It is true that if you defaulted on the debt and didn’t pay for a number of years you might be able to raise a Statute of Limitations defense when they sue you.

Your options are to pay the loan off, file bankruptcy if you have other debts, or default and attempt to settle what you owe for less than the balance.

Steve Rhode Debt Coach and Author

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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